TCF Debt Solutions has warned brokers to do their research before advising on repossession issues for fear of breaching 'Treating Customers Fairly' (TCF) rules.

The firm is arguing that intermediaries have a wider duty of care to ensure that clients consider all their alternatives before opting to sell the family home, instead of risk it being repossessed.

Andy Moody, chairman of TCF Debt Solutions said:“ It is right for pundits to point out that non-conforming borrowers, particularly those with deteriorating credit profiles will have difficulties obtaining funding because of the credit crisis, but selling the house is not the only answer.

"Even when there were funds available, consolidation of debt does not suit everybody and in fact can be construed as poor advice in some cases.

"Intermediaries who want to genuinely help clients caught in the debt trap need to look at the option of debt management planning or IVAs where appropriate.

"No one is going to thank an adviser for suggesting they sell their property in a market that looks like it is going to deteriorate and the Financial Services Authority (FSA) will take a dim view if the client is told that failing consolidation there is no other option but to sell. ”

Source: Mortgage Introducer